How to inform SERVICE DEPARTMENTS

Basically, a service department can only service the enterprise in 3 ways:

1. The department creates conditions that can make the value adding process run more smoothly (e.g., QA provides calibrated gauges and unambiguous tolerances with which the operator can monitor and direct his quality rate).
2. The department performs a task that covers the needs of clients (e.g., a help desk).
3. The department ensures that legal obligations are met (e.g., the VAT return) (VAT is Value Added Tax)

Based on loss analyses derived from the OEE registrations. Service departments can determine and/or be requested to determine in which way they can and must contribute to support the production team in adding value effectively.

Example 1

On a certain installation, 2% of the stoppages are due to malfunctions and 4% of the stoppages are due to waiting for a maintenance mechanic. Which plan of action can be set up by both the maintenance and the production team to eliminate BOTH losses?

Example 2: Purchasing

Since March 1, ‘purchasing’ entered into a new contract with the supplier of boxes, which allows boxes to be purchased for 2 cents less; this is good for ‘their’ target.

This caused gigantic problems at the production line because boxes are getting jammed. Upon re-measuring it appears that the boxes have suddenly become less dimensionally stable. The number of stoppages due to boxes getting jammed, suddenly amounts to more than 3%.

By performing a ‘before- and after March 1 analysis’, the effect of that cheaper box can be shown. Production and purchase can now discuss the matter based on facts and figures:

• Was it profitable to implement this saving?
• What are the costs caused by the stoppages versus the gains of a lower purchase price?
• What does it cost to adjust the installation to the lower dimensional stability of the boxes?

Are we going to purchase the more expensive box after all, or are we going to adjust the production process, or are we perhaps going to help the supplier so that he can start supplying a dimensionally stable box at the same price?

Example 3: Maintenance

The maintenance department has worked out a detailed program of preventive maintenance but regularly it has to do battle with ‘Production’ in order to be able to work on the machine. At the same time, production complains regularly about the installation’s low level of reliability: “The thing is always broken, and when we do need you we always have to wait for hours for a mechanic to arrive!” so the story goes….

With the aid of the OEE charts, the following issues can now be discussed:

• How often and for how long is the machine ‘Always Broken’?
• How often does one have to wait for a mechanic?
• How long, on average, does one have to wait for a mechanic?
• If there is time to wait for a malfunction and the arrival of a mechanic, why then  there is no time for scheduling preventive maintenance?

If we are going to do preventive maintenance:

• Does the time for corrective maintenance indeed decrease?
• Are we exchanging non-scheduled stoppages for scheduled stoppages?
• Can scheduled stoppages not be planned outside of production time?
• How can scheduled stoppages be used more effectively? Or become shorter?

What is the true value of OEE here

The OEE data can very well be used as a ‘common language’ for the purpose of fine-tuning the relationship between the value adding process (’the production’) and the service departments creating the conditions.

With this common language, the problem can be quantified, but it can also be proven whether certain actions indeed helped to eliminate this problem, or not! Decisions will be based on  ‘facts’ rather than feeling good!